v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store Master Funding XII, LLC, entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store Master Funding XII, LLC, entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of June 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.3 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and six months ended June 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2025December 31, 2024
Long-term AssetsRight-of-use assets, operating leases$15,401 $28,140 
Long-term AssetsProperty, plant and equipment1,077 1,227 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,016 1,495 
Current liabilitiesCurrent portion of lease liabilities, finance leases301 293 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases18,823 29,972 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases862 1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Operating lease cost1
$768 $980 $1,721 $1,960 
Finance lease cost:
Amortization of right-of-use assets75 78 151 160 
Interest on finance lease liabilities18 22 36 44 
Sublease income(114)(92)(261)(184)
Total lease cost$747 $988 $1,647 $1,980 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2025 are as follows:
(in thousands)Sublease Receipts
Remainder of 2025$293 
2026594 
2027606 
2028618 
2029631 
Thereafter4,597 
Total sublease receipts$7,339 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2025 are as follows:
(in thousands)OperatingFinance
Remainder of 2025$1,247 $180 
20262,481 361 
20272,532 361 
20282,584 303 
20292,637 85 
Thereafter18,310 — 
Total undiscounted minimum future lease payments29,791 1,290 
Imputed interest(9,952)(127)
Present value of lease liabilities$19,839 $1,163 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2025December 31, 2024
Operating leases11.07 years11.59 years
Finance leases3.64 years4.13 years
Weighted-average discount rate
Operating leases7.64 %7.15 %
Finance leases5.93 %5.75 %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store Master Funding XII, LLC, entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store Master Funding XII, LLC, entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of June 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.3 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and six months ended June 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2025December 31, 2024
Long-term AssetsRight-of-use assets, operating leases$15,401 $28,140 
Long-term AssetsProperty, plant and equipment1,077 1,227 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,016 1,495 
Current liabilitiesCurrent portion of lease liabilities, finance leases301 293 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases18,823 29,972 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases862 1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Operating lease cost1
$768 $980 $1,721 $1,960 
Finance lease cost:
Amortization of right-of-use assets75 78 151 160 
Interest on finance lease liabilities18 22 36 44 
Sublease income(114)(92)(261)(184)
Total lease cost$747 $988 $1,647 $1,980 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2025 are as follows:
(in thousands)Sublease Receipts
Remainder of 2025$293 
2026594 
2027606 
2028618 
2029631 
Thereafter4,597 
Total sublease receipts$7,339 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2025 are as follows:
(in thousands)OperatingFinance
Remainder of 2025$1,247 $180 
20262,481 361 
20272,532 361 
20282,584 303 
20292,637 85 
Thereafter18,310 — 
Total undiscounted minimum future lease payments29,791 1,290 
Imputed interest(9,952)(127)
Present value of lease liabilities$19,839 $1,163 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2025December 31, 2024
Operating leases11.07 years11.59 years
Finance leases3.64 years4.13 years
Weighted-average discount rate
Operating leases7.64 %7.15 %
Finance leases5.93 %5.75 %
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025.
On April 4, 2025, Ascent and Store Master Funding XII, LLC, entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss).
On June 30, 2025, Ascent and Store Master Funding XII, LLC, entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
As of June 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.3 million, or 92% of the total lease liabilities on the consolidated balance sheet.
During the three and six months ended June 30, 2025, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
ClassificationFinancial Statement Line ItemJune 30, 2025December 31, 2024
Long-term AssetsRight-of-use assets, operating leases$15,401 $28,140 
Long-term AssetsProperty, plant and equipment1,077 1,227 
Current liabilitiesCurrent portion of lease liabilities, operating leases1,016 1,495 
Current liabilitiesCurrent portion of lease liabilities, finance leases301 293 
Non-current liabilitiesNon-current portion of lease liabilities, operating leases18,823 29,972 
Non-current liabilitiesNon-current portion of lease liabilities, finance leases862 1,015 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Operating lease cost1
$768 $980 $1,721 $1,960 
Finance lease cost:
Amortization of right-of-use assets75 78 151 160 
Interest on finance lease liabilities18 22 36 44 
Sublease income(114)(92)(261)(184)
Total lease cost$747 $988 $1,647 $1,980 
1Includes short term leases, which are immaterial
Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of June 30, 2025 are as follows:
(in thousands)Sublease Receipts
Remainder of 2025$293 
2026594 
2027606 
2028618 
2029631 
Thereafter4,597 
Total sublease receipts$7,339 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of June 30, 2025 are as follows:
(in thousands)OperatingFinance
Remainder of 2025$1,247 $180 
20262,481 361 
20272,532 361 
20282,584 303 
20292,637 85 
Thereafter18,310 — 
Total undiscounted minimum future lease payments29,791 1,290 
Imputed interest(9,952)(127)
Present value of lease liabilities$19,839 $1,163 
Lease Term and Discount Rate
Weighted-average remaining lease termJune 30, 2025December 31, 2024
Operating leases11.07 years11.59 years
Finance leases3.64 years4.13 years
Weighted-average discount rate
Operating leases7.64 %7.15 %
Finance leases5.93 %5.75 %